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Wave Life Sciences Ltd. (WVE)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $8.699M and diluted EPS was $(0.31); both missed Wall Street consensus, with revenue below by ~$1.6M and EPS ~$0.03 worse than expected (revenue est: $10.28M*, EPS est: $(0.284)*). Management attributed revenue variability to collaboration timing and maintained cash runway into 2027 .
  • Year over year, revenue declined 55.8% vs Q2 2024 ($19.692M → $8.699M) while net loss widened ($32.9M → $50.5M), reflecting higher R&D and G&A expenses supporting multiple clinical programs .
  • Near-term catalysts: RestorAATion-2 (WVE-006) multidose/single-dose 200 mg data in Q3 2025 and 400 mg single-dose data in fall 2025; INLIGHT (WVE-007) cohort 1 (75 mg) and expanded cohort 2 (240 mg) data in Q4 2025; 400 mg cohort 3 data in Q1 2026 .
  • Management reiterated strong momentum across RNA editing and siRNA platforms; the stock’s next major reaction drivers are clinical readouts for WVE-006 (AATD) and WVE-007 (obesity), plus DMD (WVE-N531) regulatory pathway clarity in 2026 .

What Went Well and What Went Wrong

What Went Well

  • Robust pipeline execution: Multi-dosing completed for WVE-006 in the first cohort (200 mg every two weeks), and dosing completed in INLIGHT cohort 2 (240 mg), with management expressing conviction about upcoming data .
  • Clear clinical timelines: AATD 200 mg cohorts in Q3 2025, 400 mg single-dose in fall 2025; obesity cohorts 1 and 2 data in Q4 2025; cohort 3 in Q1 2026 .
  • Quote: “We remain on track to share two comprehensive data sets from our RestorAATion-2 trial this year… and our pipeline of wholly-owned GalNAc-RNA editing programs.” — Paul Bolno, CEO .

What Went Wrong

  • Missed estimates: Revenue and EPS both missed consensus (revenue est: $10.28M*, actual $8.70M; EPS est: $(0.284)*, actual $(0.31)), underscoring near-term financial sensitivity to collaboration timing .
  • YoY pressure: Revenue down 55.8% YoY and net loss widened to $50.5M vs $32.9M in Q2 2024, driven by higher R&D ($43.5M vs $40.4M) and G&A ($18.0M vs $14.3M) .
  • Cash draw: Cash fell to $208.5M from $243.1M in Q1 2025, reflecting ongoing investment in clinical programs, although runway remains into 2027 .

Financial Results

Income Statement Summary (USD Millions)

MetricQ4 2024Q1 2025Q2 2025
Revenue$83.748 $9.175 $8.699
R&D Expense$44.645 $40.622 $43.469
G&A Expense$16.136 $18.357 $17.989
Operating Income (Loss)$22.967 $(49.804) $(52.759)
Net Income (Loss)$29.253 $(46.878) $(50.469)
Diluted EPS$0.17 $(0.29) $(0.31)
Weighted Avg Shares (Diluted)172.290M 162.527M 163.988M

Balance Sheet KPIs (USD Millions)

MetricQ4 2024Q1 2025Q2 2025
Cash & Cash Equivalents$302.078 $243.075 $208.481

YoY Comparison — Q2 2025 vs Q2 2024

MetricQ2 2024Q2 2025
Revenue$19.692 $8.699
R&D Expense$40.393 $43.469
G&A Expense$14.296 $17.989
Net Loss$(32.923) $(50.469)
Diluted EPS$(0.25) $(0.31)

Estimates vs Actuals — Q2 2025

MetricConsensus EstimateActualSurprise
Revenue ($USD)$10.284M*$8.699M $(1.585)M*
Diluted EPS ($)$(0.284)*$(0.31) $(0.026)*
# of Estimates (Rev / EPS)13* / 11*——

Values with asterisks (*) retrieved from S&P Global.

Segment Breakdown

CategoryQ2 2025
Revenue compositionCollaboration/contract revenue; no segment reporting

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayThrough 2027Into 2027 Into 2027 Maintained
WVE-006 (AATD) RestorAATion-2 — 200 mg cohortsQ3 2025Q3 2025 Q3 2025 Maintained
WVE-006 — 400 mg single-doseFall 2025Fall 2025 Fall 2025 Maintained
WVE-006 — 400 mg multidoseQ1 2026Not specified priorQ1 2026 New detail
WVE-007 INLIGHT — Cohorts 1 & 22H 20252H 2025 4Q 2025 Narrowed timing
WVE-007 INLIGHT — Cohort 31Q 2026Not specified prior1Q 2026 New detail
WVE-N531 (DMD) NDA20262026 2026 Maintained
WVE-003 (HD) IND (Phase 2/3)2H 20252H 2025 2H 2025 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
RNA editing (WVE-006, AATD)Proof-of-mechanism and plan for multidose; emphasis on M-AAT as key marker Multi-dosing completed (200 mg); 400 mg single-dose completed; data cadence detailed Execution progressing; data imminent
Obesity (WVE-007, INHBE siRNA)Program initiation; cohort 1 enrolled; 2H 2025 data target Cohort 2 expanded to 32; dosing complete; 4Q 2025 readouts; cohort 3 underway Accelerating; de-risking via target engagement
DMD (WVE-N531)48-week data timing; best-in-class dystrophin profile; monthly dosing extension Confirmed 2026 NDA target; continued engagement with FDA; monthly regimen emphasized Regulatory path clarifying
HD (WVE-003)Allele-selective mHTT lowering and caudate atrophy correlation; IND in 2H 2025 FDA receptive; plan for Phase 2/3 using caudate atrophy; partner interest Consistent trajectory
Supply chain/tolerability (GLP-1 comparators)Establishing differentiation focus (muscle sparing, fat loss) Reinforced orthogonal mechanism and tolerability; biomarker strategy via Activin E Narrative strengthening
Cash runway$302.1M at YE 2024; runway into 2027 $208.5M at Q2; runway into 2027 Investment continues; runway intact

Management Commentary

  • “We remain on track to share two comprehensive data sets from our RestorAATion-2 trial this year… beginning with multidose data in the third quarter.” — Paul Bolno, CEO .
  • “We expanded Cohort 2 [INLIGHT]… triggered by favorable safety and tolerability… and robust Activin E reduction in Cohort 1.” — Paul Bolno .
  • “Our net loss was $50.5M… We ended the second quarter of 2025 with $208.5M in cash and cash equivalents… sufficient to fund operations into 2027.” — Kyle Moran, CFO .

Q&A Highlights

  • Obesity dose strategy: Expansion of cohort 2 (240 mg) was to robustly assess therapeutically relevant dosing modeled to semaglutide-like fat loss, while cohort 3 (400 mg) proceeds in parallel; management cautioned human translation may be non-linear .
  • AATD data focus: Emphasis on tracking M-AAT and total AAT, with multi-dose 200 mg expected to drive higher protein vs single-dose; at least ~3 months follow-up planned for Q3 readout .
  • Consistency and PK/PD: GalNAc distribution shows consistent hepatocyte exposure; repeat dosing should increase intra-cellular retention and durability for RNA editing .
  • Regulatory: WVE-N531 monthly dosing remains the plan for NDA in 2026; FDA discussions ongoing and supportive of accelerated approval using dystrophin .
  • INHBE biomarker: Robust Activin E reduction at 75 mg; INLIGHT will assess weight loss and body composition (DEXA), validating healthy fat loss profile .

Estimates Context

  • Q2 2025 revenue and EPS missed consensus (revenue: $10.28M* est vs $8.70M actual; EPS: $(0.284)* est vs $(0.31) actual). Estimate counts: 13 (revenue), 11 (EPS). Near-term adjustments likely modest and tied to collaboration revenue timing and operating spend cadence .
    Values with asterisks (    ) retrieved from S&P Global.

Key Takeaways for Investors

  • Results-driven catalysts ahead: The Q3 AATD (WVE-006) 200 mg data and Q4 obesity (WVE-007) cohort data are the principal stock movers; strong target engagement and protein production could re-rate the platform .
  • Financial sensitivity persists: Collaboration-driven revenue and R&D ramp widened the loss; monitor quarterly cash burn vs $208.5M cash and runway guidance into 2027 .
  • Obesity readouts: Expect focus on fat-loss biomarkers (Activin E, DEXA body composition) and tolerability; positive data would position WVE-007 as an orthogonal, infrequent-dosing complement/alternative to GLP-1s .
  • AATD differentiation: Editing preserves endogenous regulation and aims for MZ-like phenotype; multi-dose 200 mg could strengthen therapeutic potential vs DNA-editing approaches .
  • DMD pathway: 2026 NDA target with monthly dosing and functional trends supports a potentially best-in-class profile; watch for confirmatory design progress .
  • Funding optionality: GSK collaboration milestones are not in runway; positive readouts could unlock milestones or partnering, extending cash runway .
  • Trading setup: The next two quarters are data-heavy; positioning into Q3/Q4 readouts may hinge on risk appetite for clinical binary events and appetite for platform optionality .